(Advertorial) Cross-sector collaboration and global partnerships key to accelarting oil and gas project execution

Strong cross-sector collaboration and strategic partnerships between regulators and industry players have become the key foundation for accelerating investment and upstream oil and gas project execution in Indonesia.

Djoko Siswanto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), emphasized that the government remains fully committed to creating a safe, conducive, and flexible investment climate. One of the key strategies being pursued is strengthening alignment among ministries and institutions, which has often been one of the biggest challenges facing upstream oil and gas projects.

“I believe Indonesia is becoming increasingly flexible in terms of fiscal schemes, whether  through cost recovery mechanisms or other arrangements. The government can provide a certain portion of revenue sharing to contractors to ensure projects remain economically viable,” Djoko said during the Plenary Session: Path to Energy Resilience & The Role of Partnership at IPA Convex 2026 held at ICE BSD on Wednesday (20/5/2026).

According to Djoko, flexibility and investment certainty are closely tied to project completion timelines. The longer a project is delayed, the lower its economic value becomes, potentially rendering it unfeasible for execution. “Once an investment decision has been made, execution must begin immediately. If there are obstacles, let us sit together and resolve them one by one. The key is project acceleration. I believe there is no problem that cannot be solved,” he said.

The Ministry of Energy and Mineral Resources (ESDM) acknowledged that improving the ease of doing business remains essential to attracting greater investment interest. One of the most persistent challenges faced by industry players in the field is bureaucratic coordination, particularly concerning licensing and land use.

Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, stated that the government continues to intensify coordination across ministries to untangle bureaucratic bottlenecks frequently raised by industry stakeholders.

“Regulations in the oil and gas sector are already quite clear, ensuring legal certainty remains intact. We continuously align perspectives with other ministries, even late into the night, to ensure national energy security remains safeguarded,” Laode said.

Awang Lazuardi, President Director of PT Pertamina Hulu Energi, warned of the serious consequences if cross-sector coordination fails to function effectively. According to him, delays in project execution would directly reduce project economics, trigger declines in oil production, increase dependence on imports, and ultimately burden the public.

“Therefore, we must work together to accelerate all licensing and administrative processes. In my view, the most important thing is building a shared understanding that energy security is not merely an oil and gas industry issue, but a national issue,” Awang stressed.

The importance of strategic partnerships was also echoed by both international and domestic industry players under the umbrella of the Indonesian Petroleum Association (IPA).

Kathy Wu, Regional President Asia Pacific of bp, highlighted that competition for global capital allocation has become increasingly intense, not only within bp but across the entire industry. Strategic partnerships with the government, she noted, are essential to strengthening investor confidence.

“Projects in Indonesia must be truly competitive, both in terms of investment returns, risk management, execution certainty, and ensuring that projected outcomes on paper can actually be realized,” Kathy explained.

Wade Floyd, President of ExxonMobil Indonesia, pointed to the company’s 128-year partnership in Indonesia as proof that long-term collaboration delivers tangible results, including the Cepu Block, which currently contributes around 30% of the country’s national oil production. “Our long history has been built on partnership and collaboration. In my opinion, that is one of the reasons behind Indonesia’s success today,” Wade said.

Meanwhile, Ronald Gunawan, Director and Chief Operating Officer of MedcoEnergi, stated that Indonesia already possesses many of the key elements sought by investors, including attractive investment returns, business stability, and competitive fiscal schemes. “Through the new regulations, contractors can choose between gross split or cost recovery schemes. Indonesia actually already has all the essential element, if execution can be accelerated, I am confident Indonesia will become a top-tier investment destination.” Ronald said.

Ronald also emphasized that successful project execution requires collaboration not only among companies, but also with technology providers and supporting service companies. “With strong collaboration, I believe Indonesia can become significantly better,” he .concluded.